Banking News

The prospect of record low savings rates continuing is forcing many savers to review how they allocate their capital in an attempt to achieve the level of returns they have previously enjoyed. Investing in the stock market inevitably involves putting your capital at risk however there is a middle ground which continues to attract increasing interest – the structured deposit. With this in mind, we take a deeper look at this savings alternative to help understand why more and more savers are starting to see their appeal. more

With the current economic environment asking savers far more questions than it gives answers, it is good to know that there are alternatives available. We take a look at one such alternative that is proving particularly popular as savers face the harsh reality that the more traditional fixed rate savings products are failing to meet their needs. more

Millions of savers are facing the harsh realisty that there is little hope of change to interest and savings rates in the coming years. However, those with Cash ISAs do have one further option to consider – the ISA transfer. We take a closer look at why this is becoming a rising trend as well as what this could mean for those looking for the potential to improve the returns from their capital. more

With so many savers joining income investors in the hunt for high yields, being able to quickly understand and compare the numerous options available has become even more important. We therefore compare two of our most popular income investments to help understand what is driving their popularity and why they might meet your income needs. more

RBS shares rise amid rumours of restructuring

23 February 2009 / by Rebecca Sargent

Shares in troubled bank RBS have risen this morning amid rumours over a restructuring plan that it is expected to announce later this week.

Shares in RBS are currently at 227p, up from 193p on Friday. The rumours responsible for the hike suggest that RBS chief Stephen Hester will announce a radical overhaul of the bank when it makes its loss announcements on Thursday.

Last month RBS announced that it expects to reveal losses of up to £8billion at its 2008 results announcement this week. Speaking at the time, RBS Group chief executive Stephen Hester said:

"With enhanced core capital, removal of the preference share dividend and the prospect of further asset and liquidity measures, RBS is able to continue its strategic restructuring purposefully."

However, further restructuring of RBS is expected to be revealed on Thursday, including the creation of a separate division for up to £300billion of 'non-core' assets which will be sold or closed down, as well as signing up to the Government's proposed asset protection scheme to insure loans worth around £200billion against future losses.

Mr Hester is also expected to announce as many as 20,000 job cuts as the part nationalised bank tries to shore up its balance sheet and hold steady.

As yet RBS has not responded to the media reports which escalated over the weekend. When questioned about it on yesterday's broadcast of the BBC's Politics Show, City minister Lord Myners said:

"I think it's for the Royal Bank of Scotland to tell their shareholders and they will be doing that, I imagine at the end of this week, when they announce their profits for, or losses for 2008."